Concept of Global Competition and Multi-country Competition

Question

Explain about the concept of Global Competition and Multi-country Competition.

Answer 1

The concepts of global competition and multi-country competition are specified here:

1. There are valuable differences in the patterns of international competition from industry to the industry.

2. At one tremendous is multi-country competition in which there are more cross-country changes in market circumstances and in the companies competing for leadership that the market competition among rivals in one country is not closely linked to the market competitions in other countries.

3. With multi -country competition, rival firms fight for national championships and successful in one country does not necessarily signal the capability to charge well in other countries.

4. In multi-country competition, the power of a organization’s resource capabilities and strategy in one country may not improve its competitiveness to the same amount in other countries where it operates.

5. At the other extreme is global competition in which competitive conditions and prices across country markets are strongly connected and the term world or global market has true meaning.

6. In a globally competitive industry, much the similar collection of rival companies competes in lots of different countries, but particularly so in countries where vending amounts are large and where having a competitive presence is strategically valuable to making a strong global situation in the industry.

7. A company’s competitive condition in one country both affects and is affected by its condition in other countries.

8. Rival firms in internationally competitive industries vie for worldwide leadership.

9. An industry can have parts that are globally competitive and parts in which competition is country by country.

10. It is valuable to know that an industry can be in transition from multi-country competition to the global competition.

11. In addition to noting the understandable political and cultural differences between countries, a company should figure its strategic approach to competing in outside markets according to whether its industry is characterized by global competition, multi-country competition, or a transition from one to the other.